Supply chain management

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain). Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.

Supply chain management is aimed at managing complex and dynamic supply and demand networks (cf. Wieland/Wallenberg, 2011) Problems addressed by supply chain management Supply chain management must address the following problems:

Distribution Network Configuration: number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks and customers. Distribution Strategy: questions of operating control (centralized, decentralized or shared); delivery scheme, e.g., direct shipment, pool point shipping, cross docking, DSD (direct store delivery), closed loop shipping; mode of transportation, e.g., motor carrier, including truckload, LTL, parcel; railroad; intermodal transport, including TOFC (trailer on flatcar) and COFC (container on flatcar); ocean freight; airfreight; replenishment strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, private carrier, common carrier, contract carrier, or 3PL). Trade-Offs in Logistical Activities: The above activities must be well coordinated in order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only one of the activities is optimized. For example, full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments. If, however, a full truckload of a product is ordered to reduce transportation costs, there will be an increase in inventory holding costs which may increase total logistics costs. It is therefore imperative to take a systems approach when planning logistical activities. This trade-offs are key to developing the most efficient and effective Logistics and SCM strategy. Information: Integration of processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, potential collaboration, etc. Inventory Management: Quantity and location of inventory, including raw materials, work-in-process (WIP) and finished goods. Cash-Flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply chain.

Supply chain execution means managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bidirectional. Activities/functions Supply chain management is a cross-function approach including managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end-consumer. As organizations strive to focus on core competencies and becoming more flexible, they reduce their ownership of raw materials sources and distribution channels. These functions are

increasingly being outsourced to other entities that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and the velocity of inventory movement. Several models have been proposed for understanding the activities required to manage material movements across organizational and functional boundaries. SCOR is a supply chain management model promoted by the Supply Chain Council. Another model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped into strategic, tactical, and operational levels. The CSCMP has adopted The American Productivity & Quality Center (APQC) Process Classification Frameworks a highlevel, industry-neutral enterprise process model that allows organizations to see their business processes from a cross-industry viewpoint. Strategic level Strategic network optimization, including the number, location, and size of warehousing, distribution centers, and facilities. Strategic partnerships with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics. Product life cycle management, so that new and existing products can be optimally integrated into the supply chain and capacity management activities. Information technology chain operations. Where-to-make and make-buy decisions. Aligning overall organizational strategy with supply strategy. It is for long term and needs resource commitment.

Tactical level Sourcing contracts and other purchasing decisions. Production decisions, including contracting, scheduling, and planning process definition. Inventory decisions, including quantity, location, and quality of inventory. Transportation strategy, including frequency, routes, and contracting. Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise.

Milestone payments. Focus on customer demand and Habits.

Operational level Daily production and distribution planning, including all nodes in the supply chain. Production scheduling for each manufacturing facility in the supply chain (minute by minute). Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers. Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. Inbound operations, including transportation from suppliers and receiving inventory. Production operations, including the consumption of materials and flow of finished goods. Outbound operations, including all fulfillment activities, warehousing and transportation to customers. Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers. From production level to supply level accounting all transit damage cases & arrange to settlement at customer level by maintaining company loss through insurance company.

Importance of supply chain management Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy. In Peter Duckers (1998) new management paradigms, this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies. During the past decades, globalization, outsourcing and information technology have enabled many organizations, such as Dell and Hewlett Packard, to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities (Scott, 1993). This inter-organizational supply network can be acknowledged as a new form of

organization. However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not clear what kind of performance impacts different supply network structures could have on firms, and little is known about the coordination conditions and trade-offs that may exist among the players. From a systems perspective, a complex network structure can be decomposed into individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. Therefore, the choice of an internal management control structure is known to impact local firm performance (Mint berg, 1979). In the 21st century, changes in the business environment have contributed to the development of supply chain networks. First, as an outcome of globalization and the proliferation of multinational companies, joint ventures, strategic alliances and business partnerships, significant success factors were identified, complementing the earlier "Just-In-Time", "Lean Manufacturing" and "Agile Manufacturing" practices. Second, technological changes, particularly the dramatic fall in information communication costs, which are a significant component of transaction costs, have led to changes in coordination among the members of the supply chain network (Coase, 1998). Many researchers have recognized these kinds of supply network structures as a new organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual Corporation", "Global Production Network", and "Next Generation Manufacturing System". In general, such a structure can be defined as "a group of semi-independent organizations, each with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration" (Ackermans, 2001). The security management system for supply chains is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards published jointly by ISO and IEC.

Quality management
The term Quality management has a specific meaning within many business sectors. This specific definition, which does not aim to assure 'good quality' by the more general definition (but rather to ensure that an organization or product is consistent), can be considered to have four main components: quality planning, quality control, quality assurance and quality improvement. Quality management is focused not only on product/service quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality. Principles Quality management adopts a number of management principles that can be used by top management to guide their organizations towards improved performance. The principles include: Customer focus Since the organizations depend on their customers, therefore they should understand current and future customer needs, should meet customer requirements and try to exceed the expectations of customers. An organization attains customer focus when all people in the organization know both the internal and external customers and also what customer requirements must be met to ensure that both the internal and external customers are satisfied. Leadership Leaders of an organization establish unity of purpose and direction of it. They should go for creation and maintenance of such an internal environment, in which people can become fully involved in achieving the organization's quality objective. Involvement of people People at all levels of an organization are the essence of it. Their complete involvement enables their abilities to be used for the benefit of the organization. Process approach The desired result can be achieved when activities and related resources are managed in an organization as process.

System approach to management An organization's effectiveness and efficiency in achieving its quality objectives are contributed by identifying, understanding and managing all interrelated processes as a system. Continual improvement One of the permanent quality objectives of an organization should be the continual improvement of its overall performance. Factual approach to decision making Effective decisions are always based on the data analysis and information. Mutually beneficial supplier relationships Since an organization and its suppliers are interdependent, therefore a mutually beneficial relationship between them increases the ability of both to add value. These eight principles form the basis for the quality management system standard ISO 9001:2008. Quality standards The International Organization for Standardization (ISO) created the Quality Management System (QMS) standards in 1987. They were the ISO 9000:1987 series of standards comprising ISO 9001:1987, ISO 9002:1987 and ISO 9003:1987; which were applicable in different types of industries, based on the type of activity or process: designing, production or service delivery. The standards are reviewed every few years by the International Organization for Standardization. The version in 1994 was called the ISO 9000:1994 series; consisting of the ISO 9001:1994, 9002:1994 and 9003:1994 versions. The last major revision was in the year 2008 and the series was called ISO 9000:2000 series. The ISO 9002 and 9003 standards were integrated into one single certifiable standard: ISO 9001:2008. After December 2003, organizations holding ISO 9002 or 9003 standards had to complete a transition to the new standard. ISO released a minor revision, ISO 9001:2008 on 14 October 2008. It contains no new requirements. Many of the changes were to improve consistency in grammar, facilitating translation of the standard into other languages for use by over 950,000 certified organizations in the 175 countries (as at Dec 2007) that use the standard. The ISO 9004:2009 document gives guidelines for performance improvement over and above the basic standard (ISO 9001:2000). This standard provides a

measurement framework for improved quality management, similar to and based upon the measurement framework for process assessment. The Quality Management System standards created by ISO are meant to certify the processes and the system of an organization, not the product or service itself. ISO 9000 standards do not certify the quality of the product or service. In 2005 the International Organization for Standardization released a standard, ISO 22000, meant for the food industry. This standard covers the values and principles of ISO 9000 and the HACCP standards. It gives one single integrated standard for the food industry and is expected to become more popular in the coming years in such industry. ISO has also released standards for other industries. For example Technical Standard TS 16949 defines requirements in addition to those in ISO 9001:2008 specifically for the automotive industry. ISO has a number of standards that support quality management. One group describes processes (including ISO 12207 & ISO 15288) and another describes process assessment and improvement ISO 15504. Quality terms Quality Improvement can be distinguished from Quality Control in that Quality Improvement is the purposeful change of a process to improve the reliability of achieving an outcome. Quality Control is the ongoing effort to maintain the integrity of a process to maintain the reliability of achieving an outcome. Quality Assurance is the planned or systematic actions necessary to provide enough confidence that a product or service will satisfy the given requirements.

Conflict management
Conflict management involves implementing strategies to limit the negative aspects of conflict and to increase the positive aspects of conflict at a level equal to or higher than where the conflict is taking place. Furthermore, the aim of conflict management is to enhance learning and group outcomes (effectiveness or performance in organizational setting) (Rahim, 2002, p. 208). It is not concerned with eliminating all conflict or avoiding conflict. Conflict can be valuable to groups and organizations. It has been shown to increase group outcomes when managed properly (e.g. Alper, Tjosvold, & Law, 2000; Bodtker & Jameson, 2001; Rahim & Bonoma, 1979; Khun & Poole, 2000; DeChurch & Marks, 2001). Conflict While no single definition of conflict exists, most definitions seem to involve the following factors: that there are at least two independent groups, the groups perceive some incompatibility between themselves, and the groups interact with each other in some way (Putnam and Poole, 1987). Two example definitions are, process in which one party perceives that its interests are being opposed or negatively affected by another party" (Wall & Callister, 1995, p. 517), and the interactive process manifested in incompatibility, disagreement, or dissonance within or between social entities (Rahim, 1992, p. 16). There are several causes of conflict. Conflict may occur when: A party is required to engage in an activity that is incongruent with his or her needs or interests. A party holds behavioral preferences, the satisfaction of which is incompatible with another person's implementation of his or her preferences. A party wants some mutually desirable resource that is in short supply, such that the wants of all parties involved may not be satisfied fully.

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A party possesses attitudes, values, skills, and goals that are salient in directing his or her behavior but are perceived to be exclusive of the attitudes, values, skills, and goals held by the other(s). Two parties have partially exclusive behavioral preferences regarding their joint actions. Two parties are interdependent in the performance of functions or activities.

(Rahim, 2002, p. 207) Conflict Resolution vs. Conflict Management As the name would suggest, conflict resolution involves the reduction, elimination, or termination of all forms and types of conflict. In practice, when people talk about conflict resolution they tend to use terms like negotiation, bargaining, mediation, or arbitration. In line with the recommendations in the "how to" section, businesses can benefit from appropriate types and levels of conflict. That is the aim of conflict management, and not the aim of conflict resolution. Conflict management does not necessarily imply conflict resolution. Conflict management involves designing effective macro-level strategies to minimize the dysfunctions of conflict and enhancing the constructive functions of conflict in order to enhance learning and effectiveness in an organization (Rahim, 2002, p. 208). Learning is essential for the longevity of any group. This is especially true for organizations; Organizational learning is essential for any company to remain in the market. Properly managed conflict increases learning through increasing the degree to which groups ask questions and challenge the status quo (Luthans, Rubach, & Marsnik, 1995). How to manage conflict Overall conflict management should aim to minimize affective conflicts at all levels, attain and maintain a moderate amount of substantive conflict, and use the appropriate conflict management strategy--to effectively bring about the first two goals, and also to match the status and concerns of the two parties in conflict (Rahim, 2002). In order for conflict management strategies to be effective, they should satisfy certain criteria. The below criteria are particularly useful for not only conflict management, but also decision making in management. International Conflict Management

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Special consideration should be paid to conflict management between two parties from distinct cultures. In addition to the everyday sources of conflict, "misunderstandings, and from this counterproductive, pseudo conflicts, arise when members of one culture are unable to understand culturally determined differences in communication practices, traditions, and thought processing" (Borisoff & Victor, 1989). Indeed, this has already been observed in the business research literature. Renner (2007) recounted several episodes where managers from developed countries moved to less developed countries to resolve conflicts within the company and met with little success due to their failure to adapt to the conflict management styles of the local culture. As an example, in Kozans study noted above, he noted that Asian cultures are far more likely to use a harmony model of conflict management. If a party operating from a harmony model comes in conflict with a party using a more confrontational model, misunderstandings above and beyond those generated by the conflict itself will arise. International conflict management, and the cultural issues associated with it, is one of the primary areas of research in the field at the time, as existing research is insufficient to deal with the ever increasing contact occurring between international entities.

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Team management

Team management refers to techniques, processes and tools for organizing and coordinating a group of individuals working towards a common goali.e. a team. Several well-known approaches to team management have come out of academic work. Examples include the Belbin Team Inventory by Meredith Belbin, a method to identify the different types of personalities within teams, and Ken Blanchard's description of "High Performing Teams". The 'Team Development Model', identified by Bruce Tuckman, offers a foundational definition of the stages teams go through during their lifecycle. Those stages are labeled Forming, Storming, Norming and Performing. While the activities of team management are not new, many of the tools used by team managers are. The more Organizational Development-oriented practitioners often use interview-based analysis and provide reportage and insights that team leaders and their management may use to adapt team practices for higher performance. Teams can also be developed through team building activities which can also be used simply to build relationships where team members lack cohesion due to organizational structure or physical distance. Project managers may approach team management with a focus on structure, communications and standardized practices. With the growing need to integrate the efforts of teams composed of members from different companies and geographies, organizations are increasingly turning to a new class of Internet software for team management. These tools combine planning and collaboration with features that provides a structure for team

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relationships and behaviors. In addition, there are tools that facilitate the forming of highly productive teams through analysis of personality and skills profiles.

Time management
Time management is the act or process of exercising conscious control over the amount of time spent on specific activities, especially to increase efficiency or productivity. Time management may be aided by a range of skills, tools, and techniques used to manage time when accomplishing specific tasks, projects and goals. This set encompasses a wide scope of activities, and these include planning, allocating, setting goals, delegation, analysis of time spent, monitoring, organizing, scheduling, and prioritizing. Initially, time management referred to just business or work activities, but eventually the term broadened to include personal activities as well. A time management system is a designed combination of processes, tools, techniques, and methods. Usually time management is a necessity in any project development as it determines the project completion time and scope. Time management and related concepts Time management has been considered as subsets of different concepts such as: Project management. Time Management can be considered as a project management subset and is more commonly known as project planning and project scheduling. Time Management has also been identified as one of the core functions identified in project management. Attention management: Attention Management relates to the management of cognitive resources, and in particular the time that humans allocate their mind (and organizations the minds of their employees) to conduct some activities. Personal knowledge management: see below (Personal time management).

Conceptual effect on labor

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Professor Stephen Smith, of BYUI, is among recent sociologists that have shown that the way workers view time is connected to social issues such as the institution of family, gender roles, and the amount of labor by the individual. Personal Time Management Time management strategies are often associated with the recommendation to set personal goals. These goals are recorded and may be broken down into a project, an action plan, or a simple task list. For individual tasks or for goals, an importance rating may be established, deadlines may be set, and priorities assigned. This process results in a plan with a task list or a schedule or calendar of activities. Authors may recommend daily, weekly, monthly or other planning periods associated with different scope of planning or review. This is done in various ways, as follows. Time management also covers how to eliminate tasks that don't provide the individual or organization value.